KNCT vs SPY
KNCT vs SPY
Invesco Next Gen Connectivity ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. KNCT delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | KNCT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.09% | |
| AUM | $155M | $789.1B | |
| Dividend Yield | 0.60% | 1.01% | |
| Holdings | 112 | 505 | |
| YTD Return | +43.02% | +13.10% | |
| 1Y Return | +67.90% | +22.80% | |
| 3Y Return (annualized) | +37.25% | +20.98% | |
| 5Y Return (annualized) | +16.86% | +13.20% | |
| Volatility (annualized) | 22.3% | 15.3% | |
| Max Drawdown | -57.2% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 23, 2005 | Jan 22, 1993 |
KNCT vs SPY Performance
Invesco Next Gen Connectivity ETF (KNCT) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year KNCT returned +67.90% while SPY returned +22.80%. Year to date, KNCT is up 43.02% versus a gain of 13.10% for SPY.
Over three years, KNCT compounded at +37.25% per year against +20.98% for SPY; over five years the annualized figures are +16.86% and +13.20% respectively. Across the full 21-year window we track, KNCT has the edge at +13.18% annualized vs +8.83%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KNCT has been the more volatile fund, with annualized monthly volatility of 22.3% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -57.2% for KNCT and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KNCT charges 0.40% per year while SPY charges 0.09%. On a $10,000 position that is $40 vs $9 annually, a gap of $31 per year that compounds over a long holding period. On income, KNCT currently yields 0.60% against 1.01% for SPY.
Holdings Overlap
KNCT and SPY share 38 holdings out of 564 unique holdings combined, representing a 18.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in KNCT | Weight in SPY | Difference |
|---|---|---|---|
| AAPL | 7.34% | 7.09% | 0.25% |
| MU | 8.86% | 1.71% | 7.15% |
| AVGO | 7.45% | 2.73% | 4.72% |
| INTC | Pro | Pro | Pro |
| CSCO | Pro | Pro | Pro |
| PANW | Pro | Pro | Pro |
| MRVL | Pro | Pro | Pro |
| CRWD | Pro | Pro | Pro |
| ANET | Pro | Pro | Pro |
| VZ | Pro | Pro | Pro |
See all 10 holdings KNCT shares with SPY Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, KNCT or SPY?
KNCT has an expense ratio of 0.40% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, KNCT or SPY?
Over the past year KNCT returned +67.90% vs +22.80% for SPY, so KNCT leads on 1-year performance. Over the longest common window we track (21 years), KNCT annualized +13.18% vs +8.83% for SPY. Past performance does not guarantee future results.
Which is riskier, KNCT or SPY?
KNCT has been the more volatile fund at 22.3% annualized versus 15.3% for SPY. Worst drawdown: KNCT -57.2% vs SPY -56.5%.
Should I hold both KNCT and SPY?
KNCT and SPY have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KNCT and SPY?
KNCT and SPY share 38 common holdings with a 18.2% weight overlap. Combined, they hold 564 unique securities.
Which pays a higher dividend, KNCT or SPY?
KNCT yields 0.60% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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